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Restaurant Chains Shift Towards Menu Streamlining

Key Takeaways

Major chain restaurants like Starbucks, Outback Steakhouse, Papa John’s, and Chili’s are reducing their menu options. This trend diverges from the broader industry movement towards expansion and aligns with comprehensive turnaround strategies. Simplifying menus can enhance product quality, lower operational costs, and highlight more profitable menu items.

Are more menu choices what diners really want, or is a curated selection the better approach?

In recent years, many restaurants have aimed to diversify their offerings to attract a wider array of customers. However, several prominent chains are beginning to take a different route. For instance, Outback Steakhouse is downsizing its menu complexity, and Papa John’s is eliminating items that complicate kitchen workflows.

Susan Roe, an associate professor in the hospitality and tourism management department at San Francisco State University, notes that streamlining menus not only boosts efficiency and quality but also helps in cutting down on food waste, decreasing ingredient expenses, and shifting customer focus to higher-margin menu items.

Starbucks plans an ambitious overhaul, looking to cut 30% of its menu to enable baristas to deliver quality service more quickly, contributing to a welcoming environment in its locations.

The move towards a slimmer menu is notable, particularly as the restaurant industry as a whole has been generally expanding its offerings post-pandemic. After a period of menu reductions during the pandemic, many chains sought to broaden their selections to maximize inventory use and cope with workforce challenges.

Bloomin’ Brands and Papa John’s Join the Trend

Amid declining sales, Bloomin’ Brands, which owns Outback Steakhouse among others, is following a similar path in simplifying its menu. CEO Michael Spanos reported that their menu would see reductions of up to 20%, focusing first on less popular and labor-intensive items to alleviate kitchen pressures. This strategy not only aims to cut costs but also aims to enhance employee morale.

Papa John’s CEO Todd Penegor echoed these sentiments, explaining that the complexity of a broad menu can hinder kitchen efficiency. He shared that the chain has already removed about 10 items and has plans for further cuts to streamline operations.

Recent Trends in Menu Sizes

Before the pandemic struck, restaurant menus remained relatively stable but began shrinking slightly over time, according to insights from Lizzy Freier, director of menu research at Technomic. The initial wave of the pandemic prompted many chains to drastically cut their menus, but since then, there has been a gradual increase in menu offerings.

In 2024, data indicates that all establishment types, excluding fine dining, have seen an uptick in their average menu size. Nevertheless, even chains committed to reducing their menus still aim to innovate. For example, Papa John’s is preparing new offerings for late 2025 to maintain consumer interest.

In a similar vein, Sweetgreen has introduced air-fried french fries and continues to launch new items, while Chipotle has also expanded its options in recent years.

The ‘Journey of Simplification’

Chili’s has successfully reduced its menu size, leading to a restaurant revival, according to Kevin Hochman, CEO of Brinker International. The chain has eliminated approximately 25% of its menu. This has resulted in improved food quality, including daily-made guacamole and enhanced bacon texture, while maintaining efficiency despite an increase in customer traffic. Chili’s reported a remarkable 31% surge in sales year-over-year in its latest quarter.

Hochman concluded optimistically, stating, “In short, Chili’s is broadly relevant again.” He also mentioned that another of Brinker’s brands, Maggiano’s Little Italy, is embarking on a similar simplification journey.

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